For Yen Crosses
Indicators:
Key conditions:
The timeframe for analysis and trade control should be H1 or H4. This strategy is designed for medium-term trading and is tailored for currency pairs involving JPY. When placing a SELL trade, it is advisable to set a larger Stop Loss.
BUY conditions (all conditions must be met):
EMA (8) crosses the SMA (21, high) from below to above, and the price closes above the SMA.
The ADX indicator is above 15 and trending upward.
The (+DI) line crosses the (-DI) line from below to above.
Enter the BUY trade at the opening of the next bar.
Set a Stop Loss 5-15 points below the SMA (21, high), then trail it with the same step.
SELL conditions (all conditions must be met):
EMA (8) crosses the SMA (21, low) from above to below, and the price closes below the SMA.
The ADX indicator is above 15 and trending upward.
The (-DI) line crosses the (+DI) line from below to above.
Enter the SELL trade at the opening of the next bar.
Set a Stop Loss 5-15 points above the SMA (21, low).
Exit criteria: Exit the trade when the Stop Loss or Take Profit is hit, or when a reverse signal occurs.
Exercise:
Open a chart with a timeframe of H1 or H4. Apply the EMA indicator with settings (8, 0, close) and the SMA indicator twice: one with settings (21, 0, high) and the other with settings (21, 0, low). Add the ADX indicator with a period of 14 and set the level to 15.
For a BUY trade, wait for EMA (8) to cross the SMA (21, high) from below to above and for the price to close above the SMA. Ensure the ADX is above 15 and rising, and the (+DI) crosses the (-DI) from below to above. Enter the trade at the opening of the next bar and set the Stop Loss 5-15 points below the SMA (21, high). Use a trailing Stop Loss with the same step.
For a SELL trade, wait for EMA (8) to cross the SMA (21, low) from above to below and for the price to close below the SMA. Ensure the ADX is above 15 and rising, and the (-DI) crosses the (+DI) from below to above. Enter the trade at the opening of the next bar and set the Stop Loss 5-15 points above the SMA (21, low). Exit trades based on the specified conditions.
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